The automobile industry kicked off the new financial year on a positive note, registering an overall growth of 17.44% in April 2018 to more than 23.79 lakh units from the year earlier period, on the back of good demand across categories.
Passenger vehicle sales in the domestic market grew 7.5% to more than 2.98 lakh units, driven by double-digit growth in utility vehicles and vans, according to data released by industry body SIAM on Thursday.
Car, van sales jump
Domestic car sales rose 4.89% to more than 2 lakh units and utility vehicle sales rose 11.92% to 79,136 units, while van sales jumped 18.99% to 19,185 units during April 2018. “We have started the current financial year on a positive note. We expect the industry to carry on the momentum during the rest of the year as well,” SIAM deputy director general Sugato Sen said. However, exports of passenger vehicles slid 15.89% to 50,921 units.
Mr. Sen added that vehicles were exported to 180 countries and developments in those countries may have impacted the exports. Sridhar V., partner at Grant Thornton India said, “While passenger cars, as in sedans, have grown at a slower pace, comparably there is a noticeable recovery from the previous years and is much more positive in relation to SUVs, which have again shown to be the favourites.”
According to SIAM data, commercial vehicle sales grew almost 76% to 72,993 units on the back of low base effect in April 2017.
“Commercial vehicles have reported fabulous growth. It is expected to show a growing trend, especially with the monsoon prediction being positive. A fair amount of that growth is expected to be also on account of replacements and strict enforcement of compliance with overloading.” Mr. Sridhar said.
The total two-wheeler sales in April rose 16.92% to more than 19.58 lakh units. While motorcycle sales rose 19.38% to over 12.29 lakh units, scooters sales grew 12.63% to more than 6.61 lakh units.
